by Chris Becker
Commsecs recent weekly economic update had a very interesting chart at the end that I thought might interest those of you that track both the Aussie dollar and the price of crude oil, with the price at the pump now at a six month high.
Long term observers would know there’s more to it of course, with the actual price of petrol at the pump based off the Singapore terminal price. In theory.
Note the sizeable delay when prices go down against the immediate response on the price rise and the resultant “wait and see” period (read: gouging) when prices decline for a little and then catch up as recently:
Last night global crude surged over 3% on the back of an upbeat OPEC consumption report and while the Aussie has broken above 80 cents on Budget bullishness, expect more pain at the pump.